As part of its growing presence in the digital marketplace, GfK MRI has partnered with key data management platforms (DMPs) to launch 23 online advertising targets that bring new actionable insights to political ad campaigns.

When did you last hold a real record in your hands? I was reminiscing recently with a friend of mine about the lost pleasure of the vinyl experience: from browsing and then purchasing a record in an actual record store, to getting home and undoing the cellophane wrapper, to carefully holding the record’s edges in the palms of your hands and placing it on the turntable – not to select a track, but to listen to a whole album. It was a ritual!

But it wasn’t just this experience of buying and putting a vinyl on that was special, its magic was in the quality of the sound it produced. It was rich, yet raw – a sound quality that even today’s CDs, MP3 downloads and streaming don’t compare. Neil Young, who apparently winces when he listens to digital downloads, has set up PonoMusic in an effort to make music available in a way that sounds closer to how the artists heard it when they originally played it in the recording studio.

Digital radio is on the rise but listeners still tune in to FM radio

So, this sound quality nostalgia begs the question: If the compressed sound of a CD doesn’t match that of a vinyl, how will digital audio broadcasting (DAB) be able to outperform analogue radio one day? The audio quality argument for digital radio was always a weak one. And, present sales figures and listening habits don’t provide an answer either to date. A total of 22 million digital audio broadcasting (DAB) radio sets have been sold in the UK up to the end of 2015 (excluding in-car sets), which is almost an average of one per household (source: GfK data); despite the latest RAJAR figures (Q4 2015) reporting that 38.6% of the UK population listen to radio on a DAB set in an average week. Yet, sales of analogue radio sets still outnumber DAB sets and people currently spend more time listening to FM radio than to digital.

Certainly, digital radio listening is growing, as the number of opportunities to listen to radio digitally is rising. The number of new cars sold that had DAB digital radio as a standard option in the UK reached 80% in the final three months of 2015. In total, 1.9 million cars with DAB radio were sold in 2015. We will see how quickly this translates to increased digital listening as the industry heads towards the 50% digital share of listening threshold required for the digital switchover (currently 41.7%).

It’s estimated that 98% of consumers in the US want an AM/FM radio with their new car purchase. Car owners have the opportunity to enjoy the technological advances afforded by Apple CarPlay and Android Auto, with connected dashboards providing a number of apps for audio entertainment, but Americans are not embracing this. J.D. Power research claims that nine in ten consumers do not use built-in car apps regularly a year after they purchase their new car.

Is analogue the new digital?

We live in a world obsessed by all things digital and this is particularly so in the media industry. There are many advantages, of course. It’s presented as superior to everything non-digital, yet brands should be cautious about adopting digital strategies as a blanket approach.

New technology does not always mean progress. Moreover, humans are analogue by nature and not everyone wants new technology forced upon them. We’re still listening to FM radio, reading printed newspapers, magazines and books and rediscovering vinyl! We’re not shunning digital devices but the enriched, engaging analogue experience is still one of life’s more simple pleasures.

Please share your thoughts in the comments below. You can also email me at John.Carroll@GfK.com or follow me on Twitter @MediaCarroll.

The start of any year at GfK provides an opportunity for us to analyze and reflect on the previous year’s media consumption behavior, and consider where the trends might be heading. What we see is that media consumption is becoming more complex with “connected” consumers dictating complexity through new behaviors and habits. In Sweden, going from live TV to time-shifted and video-on-demand (VOD) viewing – sometimes on more than one internet-connected screen – is becoming the new normal.

So, what’s going on in Sweden?

Things are moving apace in the Swedish TV and video market as the country, as well as others around the world, has witnessed the impact of the Internet on TV and video viewing. Even film distributors and retailers are realizing that the viewing public has found it much easier to use the virtual video store within their set-top box instead of heading out in the bitter cold weather to rent or buy a movie to watch at home (just ask the residents of Karesuando where even traffic freezes when it is minus 40°C outside).

• Sharp increase for watching video on the internet

According to the annual report from Stiftelsen för internetinfrastruktur (The Internet Foundation in Sweden, promoting the positive development of the internet for the benefit of the public), 70% of internet users (91% of all Swedish adults) watched film and video on the internet in 2015 – a sharp increase from 52% the previous year. When cross-referenced against GfK’s own data, that shows sales of catalogue video films falling by 19% over the same period, we can really see the appeal of movies on sites like Netflix and HBO – easy-to-access and easy-on-the-pocket.

• Subscription VOD and smart TVs are in the driver’s seat

GfK’s Viewscape study, which measures the total viewing ecosystem by types of content, platform and service in 15 countries, estimates that Swedes spend around a total of four hours a day watching TV and video content on any device. Furthermore, a quarter (26%) of the population uses Netflix and 39% use any other form of VOD or subscription video-on-demand (SVOD) service. Indeed, smart TV is the most popular screen for watching Netflix, more so than the laptop, thanks to easy access to the Netflix app on-screen and the high definition viewing experience.

Smart TVs are certainly contributing to the growth of VOD viewing. GfK data tells us that 64% of all TV sets sold in Sweden in 2015 were smart TVs, which puts the country ahead of many others including, for example, Germany (60%), the United Kingdom (54%) and Italy (34%).

• The video retail industry is having to find new business models and fast

Viewing is moving to a self-curated rather than scheduled activity. To some extent, just like the old boxing expression, the industry has to roll with the punches. An unstoppable digital force is meeting a very movable medium and it is the online retailers and on-demand platforms that are adapting most quickly to change. The video retail industry is having to find new business models and fast. It has no choice owing to a 62% drop in the physical video market in Sweden since 2009.

Online video is here to stay. The television set is no longer limited to delivering linear television and viewing is still predominantly a social activity done at home. The flexibility of choice is leading to more rather than less video consumption. Video content provides social glue and a range of information and entertainment. So long as there are binge-worthy, on-demand movies and television shows to watch, then video in all its forms will remain in demand and provide a reason to stay in on a cold Swedish evening.

Please share your thoughts in the comments below or email me at Lars.Sudow@GfK.com.

With the rise of mobile and digital, marketers are allocating more and more of their advertising budget to these areas. Measuring digital metrics (GRP, CTR, CPC,…) is good but not enough to see if your digital ad campaign was successful. Learn more about the real impact of your digital ad campaign.

In 2015, GfK celebrated 50 years of Television Audience Measurement (TAM) in The Netherlands. Time to reflect how emphatically the media landscape and the TAM challenges have changed, all around the globe: Digitization has been driving the proliferation of different devices and ways of viewing TV content. “Connected” consumers shift from live TV to time-shifted and video-on-demand (VOD) viewing – sometimes simultaneously on more than one internet-ready screen. How and in what time do these trends impact TV consumption? How will we capture latest audience behavior in new dimensions to provide broadcasters and advertisers with the insight they need today and tomorrow? How can we “future-proof” TAM in an increasingly complex and challenging environment?

These are definitely exciting times for those working in TAM. As the media ecosystem continues to evolve, we must continue to innovate and develop quality assured ways of measuring it. There are currently two aspects drawing researchers’ attention:

1. The type of viewing is changing: Live to time-shift and VOD

While the total amount of time spent per day watching TV has changed little over the past three years (2013-2015), the type of viewing is changing. Live TV still accounts for the majority of TV viewing, but it has declined, while time-shifted and viewing of VOD content have increased. So, traditional TAM risks missing a substantial part of the “unknown” viewing, consisting of VOD content and subscriptions to VOD services that are on the increase, also in The Netherlands. (Source: SKO/GfK Research)

2. There is a next generation of devices in proliferation: Smart and addressable TVs

State-of-the-art measurement strategies, like those of Dutch television audience measurement servicer SKO, already encompass the “big” TV screen and mobile devices. But there is more to come. Sales of smart TVs continue to increase and new technological advancements, such as addressable TVs, are emerging on the horizon. As connectivity increases, we expect more relevant impact on viewing behavior. Luckily, there is still a gap between smart TV penetration and the number of TVs being connected to the internet. That gives TAM innovators time to prepare.

Three things TAM providers and TAM savvy businesses will have to do

With more time-shift and VOD viewing and more smart TVs in the market – of which only a smaller part have so far been running connected to the internet: How will we learn if, when and how these trends will continue to alter perception of TV content?

Leaders focus on three strategies to master the challenge:

Improving quality of metering: Fundamental is a technical upgrade of the metering system to improve online data communication, resulting in faster and more efficient data processing. In addition, extending the memory of the meter will pave the way for more granular level measurement of targeted advertising and the provision of data much closer to the viewing occasion. Furthermore, it is useful to increase panel sizes to improve representativeness, strategies that players like SKO and GfK have jointly been exerting in the Netherlands.

Extending metering to new viewing trends: To gain insight into developments and a better understanding of the VOD trend, SKO and GfK have added VOD to their measurement system. Within the Dutch market it is now easier to map, for example, the penetration and usage of devices and video-on-demand (VOD). GfK has set up a continuously expanding VOD library with relevant content to pinpoint which VOD has been watched in households.

Understanding what is being viewed on smart TVs: GfK uses several ways to dig into what is being viewed on smart TVs. For example, specific routers are devoted to measure TV viewing on all connected devices. There are technical opportunities to derive information from HDMI ports, which are used to connect peripheral devices such as media players. Additionally, surveying your TAM panel during the registration process about their devices and extending the regular panel surveys will provide valuable details.

Future-proofing television audience measurement is an innovation-seeking challenge that will need digitally savvy trailblazers. The benefits of this for both broadcasters and advertisers in terms of the targeting and optimization of content are clear: Measurement methods are advancing for targeted advertising, requiring more granular and faster reporting. Also, TAM insights won’t solely focus on broadcast content but also VOD.

Please share your thoughts in the comments below or email me at Liesbeth.Nekkers@GfK.com.

About

“Future-proofing TV audience measurement for the “connected” consumers” was the subject of a presentation GfK gave with SKO, television audience measurement servicer and GfK client in The Netherlands, at the ASI European Television Conference in Venice in November 2015. More information: www.asiconferences.com

According to new GfK MRI research, today’s smartphone user is just as likely to be seeking mindless entertainment – playing a game or streaming a video – as connecting with friends and family through texting or other modes.

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